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Christopher Lewis
Gold daily chart, July 08, 2019

Gold markets fell rather hard during the trading session on Friday, reaching below the $1400 level at one point. However, Jerome Powell has suggested later in the day that the Federal Reserve was still going to do whatever it takes to sustain the economic development, meaning that interest rate hikes are off the table, and interest rate cuts are more than likely at this point. That is good for Gold longer-term but we have formed a bit of a double top and a “lower high.” The weekly chart also features a couple of shooting stars, so I think at this point it’s likely that we should see a pullback that can be taken advantage of.

Gold Analysis Video 08.07.19

For my money, the best place to buy gold is closer to the $1350 level, or maybe as high as the $1360 level. That is the gap that has yet to be filled, so I think that given enough time we will probably do so. At that point we are testing the 50% Fibonacci retracement level and should attract a lot of attention as the 50 day EMA is in that neighborhood as well. Having said that, if we do break above the $1450 level, the market will blow off to the upside and go much higher, but still a bit overbought and definitely more of a precarious trade than buying the pullback that show signs of support underneath.

Please let us know what you think in the comments below

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